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MercadoLibre (MELI) Stock Dips While Market Gains: Key Facts
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In the latest market close, MercadoLibre (MELI - Free Report) reached $2,122.37, with a -0.83% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 0.65%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 7.2% over the past month, lagging the Retail-Wholesale sector's gain of 9.25% and outpacing the S&P 500's gain of 4.86% in that time.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company is expected to report EPS of $9.43, up 31.7% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 38.93% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.22 per share and revenue of $20.41 billion. These totals would mark changes of +80.99% and +41.02%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.5% higher within the past month. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 60.76. For comparison, its industry has an average Forward P/E of 22.59, which means MercadoLibre is trading at a premium to the group.
It is also worth noting that MELI currently has a PEG ratio of 1.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MercadoLibre (MELI) Stock Dips While Market Gains: Key Facts
In the latest market close, MercadoLibre (MELI - Free Report) reached $2,122.37, with a -0.83% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 0.65%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 7.2% over the past month, lagging the Retail-Wholesale sector's gain of 9.25% and outpacing the S&P 500's gain of 4.86% in that time.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company is expected to report EPS of $9.43, up 31.7% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $5.22 billion, reflecting a 38.93% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.22 per share and revenue of $20.41 billion. These totals would mark changes of +80.99% and +41.02%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.5% higher within the past month. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 60.76. For comparison, its industry has an average Forward P/E of 22.59, which means MercadoLibre is trading at a premium to the group.
It is also worth noting that MELI currently has a PEG ratio of 1.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.18 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.